Canada will impose new tariffs on US-made vehicles in response to a wave of American trade actions starting just after midnight on April 9.
On April 3, the US imposed a 25% tariff on Canadian-made vehicles, targeting a sector that supports more than half a million Canadian jobs.
Canada's new tariffs will apply a 25% duty on two types of vehicle imports from the United States: fully assembled vehicles that don’t meet Canada-U.S.-Mexico Agreement (CUSMA) requirements, and the non-Canadian and non-Mexican content within vehicles that do meet those trade rules.
Canada imported more than $35 billion worth of vehicles from the US last year, the government said on Tuesday.
The tariffs are designed to put pressure on “unjustified” tariffs imposed by the US, while also encouraging automakers to keep production and investment in Canada.
A new remission framework will be introduced to support Canadian auto producers, helping them maintain operations and jobs. Details of that support plan are expected soon.
“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the US on Canadian products,” finance minister François-Philippe Champagne said in a statement.
“The government is firmly committed to getting these US tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry.”